June 12, 2025
On the latest episode of Fed Gov Today, listeners gain timely insights into major updates coming to the Thrift Savings Plan (TSP), thanks to a deep-dive conversation with two key leaders from the Federal Retirement Thrift Investment Board: Jim Kaplan, Director of External Affairs, and Jim Courtney, Director of the Office of Participant Experience. Together, they outline changes that affect both new and long-time TSP participants, with a focus on communication, education, and long-term planning.
Kaplan begins by confirming that the L 2025 Lifecycle Fund will retire at the end of the month. Participants with investments in that fund will see their balances automatically moved to the L Income Fund. Simultaneously, the TSP introduces the new L 2075 Fund, designed for the youngest generation of federal employees. This move ensures that those just starting their careers have a default fund aligned with their distant retirement horizon.
Kaplan also highlights the continued growth of the TSP, with 7.25 million total accounts and 2.8 million Roth accounts. He credits this increase to automatic enrollment practices and the appeal of TSP’s low fees, simple investment options, and full government match. Importantly, he emphasizes that participants can keep their TSP accounts even after leaving federal service, a fact not everyone knows.
Courtney explains that, based on survey data, a significant portion of participants—especially those in the uniformed services—mistakenly believe they must roll their TSP funds out after leaving government. To counter this, his team launches targeted communication campaigns, including video messages on the American Forces Network and emails to participants aged 50–69. They also release fact sheets and educational materials to stress the benefits of staying with the TSP: low costs, fiduciary oversight, and secure account access.
Courtney describes how participant feedback plays a vital role in shaping these communications. His office routinely conducts message testing through interviews and focus groups, adjusting wording to ensure clarity and impact. He also credits the TSP’s live trainers—who conduct webinars and in-person sessions—with surfacing participant pain points that help refine both education and service.
The upcoming Roth in-plan conversion feature is scheduled for January 2026. While interest in this option isn’t universal, Courtney says those who want it are highly motivated. His team plans to roll out two calculators to support users—one on the public site and another within the secure My Account portal. The internal calculator will auto-fill data, showing how much a participant can convert, helping avoid errors and improving the user experience.
Throughout the conversation, both Kaplan and Courtney reinforce a shared mission: ensuring federal employees and service members fully understand the TSP’s offerings and feel confident in their retirement planning. Whether it’s introducing new fund options, correcting misconceptions, or creating user-friendly tools, their focus remains on empowering participants to make informed, beneficial financial decisions.
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